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Introduction
In April 2021, the Supreme Court of the United States decided on the case of AMG Capital Management LLC v. Federal Trade Commission. (FTC). Because of the ruling, the FTC is now limited in what it can do to get businesses that do fraudulent things to pay up. Since then, the decision has been criticized because it hurts the rights of consumers. The Federal Trade Commission (FTC) says that because of the case, consumers have lost more than $1.5 billion in restitution. This article will talk about the AMG ruling and what it means for protecting consumers in the United States.
A Brief History of the AMG Case
In the AMG case, a payday loan business was accused of not being honest with its customers and giving them false information. The Federal Trade Commission (FTC) sued the company to get money for customers who had been hurt by the company’s actions. The Federal Trade Commission (FTC) said the company broke the law by doing or saying things that were unfair or misleading, which is against the law according to the Federal Trade Commission Act.
The district court agreed with the FTC’s claims
The district court agreed with the FTC’s claims, and the judge ordered the company to pay customers $1.3 billion in compensation. On the other hand, the business filed an appeal against the verdict, saying that the Federal Trade Commission (FTC) didn’t have the power to ask for compensation under the Federal Trade Commission Act.
Supreme Court of the United States heard the case and ruled in favor of the company
After that, the Supreme Court of the United States heard the case and ruled in favor of the company by a vote of 9 to 0. According to the court’s decision, the Federal Trade Commission (FTC) does not have the power to seek compensation given to it by the Federal Trade Commission Act. The decision was based on how a certain part of the Act was read, and the court decided that the part did not allow the FTC to ask for compensation in this case.

Implications of the AMG Decision
The AMG ruling is likely to have a big effect on how the United States protects its consumers. Before this ruling, the Federal Trade Commission (FTC) had the power to ask businesses that did fraudulent things to pay them back. Restitution was often an important part of the FTC’s enforcement actions because it allowed the agency to pay consumers who had been hurt by fraud. One of the FTC’s main goals was to do this.
But since the court ruled that the agency did not have the right to ask for payment under the Federal Trade Commission Act, the AMG judgment severely limited the FTC’s ability to pursue restitution claims. Because of this ruling, the FTC no longer has a key tool, which makes it harder for the agency to protect consumers from deceptive business practices.
According to the Federal Trade Commission, almost $1.5 billion in restitution has been lost
The Federal Trade Commission (FTC) has estimated that consumers have lost about $1.5 billion in compensation because of the AMG ruling. The agency came up with this estimate by looking at its enforcement actions and the amounts of money it would have asked for if it had been given its old authority.
The Federal Trade Commission (FTC) says that the AMG judgment has made it harder for the agency to get money from businesses that commit fraud. This has a “chilling effect” on the agency’s ability to do enforcement work, the FTC says. The agency is also worried that the decision will give dishonest businesses more confidence because they will know that the FTC will have a harder time getting money back.
Demands That Something Be Done By Congress
After the AMG ruling, there have been calls for Congress to do something to give the FTC the power to go after restitution again. Several people in Congress have proposed a bill that, if passed, would change the Federal Trade Commission Act to make it clear that the agency can go after compensation.
Since restitution is such an important part of the Federal Trade Commission’s (FTC) enforcement actions, people who support the law say it is important to protect consumers from unethical business practices. They also say that the AMG decision has made consumers more likely to be scammed because businesses now know that the FTC has less power to get consumers paid back after the AMG decision.
Those who are against the proposal say that the Federal Trade Commission (FTC) would get too much power, which could lead to too much government regulation. They also say that it is often impossible to figure out restitution and that the FTC should focus on other ways to help, like injunctive relief.
Conclusion
The AMG ruling has big effects on the way consumer rights are protected in the United States. Because of this ruling, the FTC is now limited in what it can do to get businesses that do fraudulent things to pay up.